Paying taxes as a freelancer

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Paying taxes as a freelancer can be a bit more involved—and expensive—than paying taxes as a W-2 employee. When you’re a freelancer, you’re the boss. That’s great if you want some flexibility, but it also means you’re self-employed, so you are responsible for both the employer and employee parts of employment taxes.

When you work for someone else, your paycheck amount is your pay minus all appropriate deductions. That includes deductions for federal and state income taxes as well as Medicare and Social Security contributions.

But what you might not realize is that your employer covers part of the Medicare and Social Security amounts. As a self-employed individual, you have to pay the total amount yourself. That’s 12.4 percent for Social Security and 2.9 percent for Medicare—a total of 15.3 percent of your taxable earnings, not including federal and other income taxes.

When Do I Have to Start Paying Taxes as a Freelancer?

According to the Internal Revenue Service, if you earn $400 or more in a year via self-employment or contract work, you must claim the income and pay taxes on it. The threshold is even lower if you earn the money for church work. If you earn more than $108.28 as a church employee and the church employer doesn’t withhold and pay employment taxes, you must do so.

What Tax Forms Should I Know About?

Freelancers report their income to the IRS using a Form 1040, but they may need to include a variety of Schedule attachments, including:

  • Schedule A, which lists itemized deductions
  • Schedule C, which reports profits or losses from their freelancer business
  • Schedule SE, which calculates self-employment tax

These are only some of the forms that might be relevant to a freelancer filing federal taxes. Freelancers must also file a tax form for the state in which they live as well as with any local governments that require income tax payments.

If you’re planning to do your taxes on your own as a freelancer, it might be helpful to invest in DIY tax software. Look for options that cater specifically to home and business or self-employment situations. These software programs typically walk you through a series of questions designed to determine which forms you need to file and help you complete those forms correctly.

Six Tips for Doing Your Taxes as a Freelancer

As a freelancer, chances are you spend a lot of your time attending to clients and getting production work done. You may not have a lot of time for business organization tasks such as accounting. But a proactive approach to paying taxes as a freelancer can help you prepare to do your taxes and pay what can be a surprisingly big bill each year.

Here are six tips for handling taxes as a freelancer.

1. Keep Track of Your Income

Track your income so you know how much you may need to pay in taxes every year. Keeping track of your numbers also helps you understand whether your business is profitable and how you’re doing with income compared to past years.

You can track your income in a number of ways. Apps and software programs such as QuickBooks and Wave let you manage your freelance invoices and track income and expenses. Some also help you generate financial reports that might be helpful come tax time.

Alternatively, you can track your income in an Excel spreadsheet or even a notebook, as long as you’re consistent with writing everything down.

2. Set Money Aside in Advance

It’s tempting to count every dollar that comes in as money you can use. But it’s wiser to set money aside for taxes in advance. Depending on how much you earn as a freelancer, you could owe thousands in federal and state taxes by the end of the year, and if you didn’t plan ahead, you might not have the money to cover the tax bill.

That can lead to tax debt that comes with pretty stiff penalties and interest—and the potential for a tax lien if you can’t pay the bill.

3. Determine Your Business Structure

Make sure you know what your business structure is. Many freelancers operate as sole proprietorships. But you might be able to get a tax break if you operate as an LLC or a corporation. Talk to legal and tax professionals as you set up your business to find out about the pros and cons of each type of organization.

4. Know About Relevant Deductions

As a freelancer, you may be able to take certain federal tax deductions to save yourself some money. Tax deductions reduce how much of your income is considered taxable, which, in turn, reduces how much you owe in taxes. Here are a few common deductions that might be relevant to you as a freelancer.

Home Office

You can take the home office deduction if you’ve set aside a certain area of your home for use by the business. The IRS does have a couple of stipulations.

First, you have to regularly use the space for your business, and it can’t be something you use regularly for other purposes. For example, you can’t claim your dining room as a home office just because you sometimes work from that location.

Second, the home has to be your principal place of business, which means it’s where you do most business activity. You can’t claim the deduction if you normally work outside the home but sometimes answer work emails while you’re in the living room.

Equipment and Supplies

You can also deduct the cost of equipment and supplies that you buy for your business. That includes software purchases and relevant subscriptions, such as if you pay monthly for Microsoft 365 or annually for a domain name.

Make sure you have backup documentation for any business expenses you deduct. That means keeping receipts that show what you purchased so you can prove that the expenses were for business. You also have to be careful to keep business and personal expenses separate—art supplies for your child’s school project, for example, wouldn’t typically be considered valid business expenses.

Travel and Meals

Meals and travel expenses that are related to your business may be tax deductible. If you stay in a hotel, book a flight or incur other travel expenses that are necessary for the running of your business, you can claim them as a deduction. The same is true for 50 percent of the value of meals and beverages that you pay for as a necessity when doing business.

The IRS does set an “ordinary and necessary” rule here. For example, if you’re traveling to meet with a client and you need to eat lunch, that is likely to be considered necessary. But if you opt for a very lavish meal for no other purpose than to do so, it might not be allowed under the “ordinary” part of the rule.

Business Insurance

If you carry liability or similar insurance for your business, you can deduct it as a cost of doing business. You may also be able to deduct the cost of other insurance policies if they are necessary for your trade.

5. Estimate Your Taxes Quarterly

The IRS offers provisions for estimating your employment taxes on a quarterly basis. Self-employed individuals, including freelancers, can make these estimated tax payments, too. Paying as you go means you won’t owe a large sum every April, and if you overestimate, you may get a tax refund.

Quarterly payments are due in April, June, September and January. They can be mailed or made online. Depending on how much you earn, you may need to make quarterly estimated tax payments to avoid a penalty at the end of the year.

6. Consult a Tax Professional

As you can see just from the basic information and tips above, paying taxes as a freelancer can get complicated quickly. Consider talking to a tax professional to understand what all your obligations are and how best to reduce your tax burden using legal deductions. You might be missing a major deduction every year that could save you a lot of money.

And remember that as a freelancer, you’re running your own small business. That means paying attention to all your finances, including your credit report. If you ever want to take out a business loan or seek other funding to grow your business, you might need to rely on your good credit score.

Check your credit score, and if you find inaccurate negative information making an impact on your score, contact Lexington Law to find out how to get help disputing it.


Reviewed by Cynthia Thaxton, Lexington Law Firm Attorney. Written by Lexington Law.

Cynthia Thaxton has been with Lexington Law Firm since 2014. She attended The College of William and Mary in Williamsburg, Virginia where she graduated summa cum laude with a degree in International Relations and a minor in Arabic. Cynthia then attended law school at George Mason University School of Law, where she served as Senior Articles Editor of the George Mason Law Review and graduated cum laude. Cynthia is licensed to practice law in Utah and North Carolina.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com

Couponing Do’s & Don’ts — How to Save Money Shopping With Coupons

You’ve probably already used coupons at some point in your life. According to a 2020 survey by Statista, almost 90% of respondents reported having used coupons for shopping. Considering that coupons provide a fast, free way to reduce spending on groceries and essentials, it’s clear why coupons are so popular.

But to make your couponing efforts more successful, it’s crucial to familiarize yourself with the tips and tricks successful couponers use. The last thing you want to do is waste time collecting coupons only to realize none of them is valid when you’re checking out.

If you’re relatively new to couponing, start slowly by bringing a few paper coupons to your next shopping trip. Over time, you can incorporate more of these couponing do’s and don’ts to save more.

Couponing Do’s

Couponing doesn’t have to feel like a marathon or take up hours of your week. By following one or more of these couponing do’s, you can start to trim your monthly spending — and ultimately save more money.

1. Do Know Where to Find Coupons

The most basic step in starting to coupon is to collect them. Ideally, you can gradually build a stash of coupons for the stores and brands you frequently shop so you can always find some savings at the register.

To begin your coupon hunt, plan your weekly meals around sale products if possible. That helps you find discounts without even having to coupon. To find in-store sales, look for digital flyers on grocery store websites.

Another resource is Flipp, a free app that provides weekly flyers, deals, and online coupons for over 2,000 stores. Flipp has weekly flyers for stores like Aldi, Kroger, and Walmart. You can clip deals you find to the in-app shopping list to help you keep track.

Once your virtual or paper shopping list has all the food you need for the week, finish the list with any household essentials you need to restock, like toilet paper or cleaning supplies. You’re now ready to track down coupons for everything on your shopping list.

There are several free websites you can use to print paper coupons. These websites include coupon databases and brand websites like:

Coupons.com, Coupon Sherpa, RetailMeNot, and Valpak also have mobile apps that let you find and redeem digital coupons at the register. If you don’t want to spend time and money printing coupons, apps are your best resource. You can also try other mobile coupon apps like Grocery Pal and The Coupons App, which have digital coupons for grocery stores like Aldi, Albertsons, Kroger, Food Lion, Safeway, and Publix.

Between paper and digital coupons, you should find savings on some of the products on your weekly shopping list. If you can’t track down a specific coupon, searching online for the product name plus “coupon” is another tactic to try.

Finally, if you subscribe to a Sunday paper or get coupons and ad flyers in the mail, take a few minutes to scan for coupons you need. If you spot an incredible coupon for a product you buy regularly, you can scoop up a few extra newspapers on discount at a dollar store the following day or look online for the same coupon.

Also, don’t forget to check out those coupons they print out at the register after checkout (sometimes called Catalina coupons). Those are typically based on your specific purchases, so there may be something in there you can use. Others may be percent-off discounts on your total sale price if you spend over a certain amount.

You don’t have to go overboard and find duplicates of every coupon for your shopping list. Find as many as you can, and remember to check expiration dates so you shop in time to save.

2. Do Combine Coupons With Cash-Back Rewards Apps

Coupons usually provide a percent discount or certain dollar-off amount to let you save. But if you want to save even more on your weekly grocery haul, you can use cash-back rewards apps to earn rebates for buying certain products.

Just like searching for coupons, you can research rebate opportunities before heading to the store to earn cash back for products you were going to buy anyway. Popular rewards apps you can use include:

  • Ibotta. Earn cash back for buying specific products from Ibotta partners and uploading your receipt to the app for proof of purchase. Ibotta works with over 1,000 brands, and there are always offers on groceries and everyday essentials. You can redeem cash back through PayPal, Venmo, or free gift cards when you reach $20. Read our Ibotta review for more information.
  • Fetch Rewards. If you like Ibotta, Fetch Rewards is another must-download app. With Fetch Rewards, you earn points for buying products from dozens of popular brands. An advantage of Fetch Rewards is that you can redeem many free gift cards once you reach $3, which is possible in a single shopping trip. Read our Fetch Rewards review for more information.
  • Checkout 51. Checkout 51 is similar to Ibotta. Download Checkout 51, select offers to shop for, and upload your receipt to earn rewards. Checkout 51 works at stores like Aldi, Albertsons, Costco, Kroger, Meijer, and Walmart. You get a check when you earn $20 in cash back. Read our Checkout 51 review for more information.

There’s still nothing wrong with using paper coupons or mobile coupon apps if that’s all you have time for. But to save even more, it’s worth trying cash-back rewards apps alongside your couponing efforts.

3. Do Sign Up for Store Savings Cards

Sign up for rewards cards at the stores where you shop. Store rewards cards typically provide shoppers with additional savings in the form of reward points or discounts. Plus, some loyalty programs also send additional coupons in the mail.

Reward cards also help you earn more with Ibotta since you can connect cards from retailers like Meijer, Kroger, and Wegmans to your account. Once you connect a card, Ibotta automatically detects whether your purchase qualifies for cash back and pays you.

4. Do Stay Organized to Maximize Savings

Organize coupons to keep them easily accessible when you shop. The last thing you want is to miss a coupon when checking out or — even worse— forget your coupons at home.

Your organizational system doesn’t have to be complex or expensive. For casual couponers, a coupon wallet on Amazon costs around $10 and comes with dividers to group coupons into different sections, like meat or produce.

If you prefer managing everything from your smartphone, you can also use the free SnipSnap app to transform paper coupons into digital ones. Once you snap a picture of a paper coupon, Snip Snap uploads it to its database so you can use it while on the go. The app also tracks expiration dates and sends reminders about expiring coupons.

5. Do Know Your Store’s Coupon Policy

Does your grocer double coupons, price-match, accept competitor coupons, or give rain checks if sale goods are out of stock? If you don’t know, research coupon policies online. Grocery stores and general retailers like Walmart and Target outline coupon rules on their websites. To find a policy, use a browser to search for the name of your store of choice plus “coupon policy” (for example, “Kroger coupon policy”) or look for a frequently asked questions section on the website. These policies help you save even more money, and they aren’t always prominently advertised. Things to stay informed about include:

  • Price Matching. Stores don’t like losing a potential sale because a competitor has a slightly lower price tag, so many are willing to price match. Price matching is when a store adjusts its price to match a sale at another local store.
  • Competitor Coupons. Your store may accept competitors’ coupons, but you should clarify who their competitors are. For example, Publix accepts coupons for competitors’ private-label products, whereas Meijer doesn’t take competitor coupons at all. But some stores are more specific than Publix. Lowes Foods accepts competitor coupons only from select competitors, like Aldi, Food Lion, Target, and Walmart.
  • Rain Checks. When you want to buy an out-of-stock product, some stores issue rain checks, which guarantee the current price when it’s back in stock. But many stores have specific rules for rain checks. For example, Publix only issues one rain check per household per day (in addition to other, sometimes product-specific restrictions).

6. Do Know Local Stores’ Best Deals & Sale Patterns

You can get the most out of any coupon when you shop at the stores with the best deals for that product type, such as canned goods or toiletries.

That requires paying attention as you shop around. Over time, you learn each local store’s pricing quirks and sale patterns. For example, perhaps your local Walmart’s bakery section regularly puts bread and bagels on sale during certain days of the week. Or maybe your town’s Kroger has better prices and more frequent discounts on frozen meals than your local Publix.

As you learn this type of information, you can be more selective about where you shop for individual products. You don’t have to waste time and gas shopping at multiple stores for a single grocery trip, but for specific products, it can make sense to coupon at stores that are more likely to have deals or just better prices on that product category.

7. Do Start Slowly

When you first start couponing, it feels intimidating if you’re redeeming dozens of coupons and have a lot of numbers to crunch.

For your first few shopping trips, focus on the highest-value coupons, the ones you know are worth using. That might look like bringing three 50%-off coupons or your highest-dollar-value-off coupons.

You can even try using coupons on sale products, but don’t get too creative until you’re comfortable calculating whether things are good deals and handing over coupons at the register.

8. Do Try Stacking Coupons

Combining a coupon with a store sale is a simple way to stack savings. But you don’t have to limit yourself to just stacking coupons with sale prices. Stores like Dollar General, Meijer, and Target let you stack a manufacturer’s coupon and store coupons to save even more.

For example, if Target has Planters peanuts on sale for $2, you can use a $1 Target coupon for Planters products and a $1 Planters manufacturer’s coupon to score a free can of peanuts. You can find store coupons online or in your favorite store’s weekly flyers.

If you can’t get something for free, try stacking coupons with store sales and apps like Ibotta to maximize savings.

For example, there’s a 50%-off clearance sale on a $3.99 Red Baron pepperoni pizza, bringing the price down to $2. If you have a $1 manufacturer coupon, the price is just $1. But since Ibotta has a $0.75 rebate on Red Baron pepperoni pizza, you just scored an entire pizza for only $0.25.

To top it all off, shop with a cash-back credit card to earn even more. The goal of couponing is to find deals whenever possible and get creative to stretch the value of every dollar you spend.

9. Do Use the Overage

When your coupons exceed the sale price of a product, it produces an overage. While that doesn’t invalidate the coupons, most often, that means you get the product for $0.

However, certain retailers apply overages toward other products in your shopping cart. For example, say you get an overage of $0.50 on a box of Betty Crocker chocolate cake mix by using a manufacturer coupon and sale price. Overage-allowing retailers apply the $0.50 overage to another product in your cart.

Walmart and Kroger are two major retailers that apply overages to your cart. And Walmart is one of the few retailers that pays cash back for overages (except on purchases made using government benefits, so save coupons for purchases you make when you’re not using your SNAP and WIC benefits). Kroger issues overages on a merchandise return card (essentially, a Kroger gift card). If you’re in doubt, look up your store’s coupon policy online to learn about overage rules.

10. Do Present Coupons in the Right Order

You can maximize your savings by handing the cashier your coupons in a specific order. For example, if you have a store coupon for $5 off a $20 purchase, use that coupon first. Otherwise, your other coupons might negate the $5 coupon by discounting the total amount of the sale to less than $20.

Some stores automatically apply your coupons correctly, so the order doesn’t always matter. But to be safe, give the cashier the price-minimum coupon before you use any other coupons.

11. Do Get in & Get Out

Know what you plan to buy before you go to the store, and stick to your shopping list.

If you stay in the store too long, you become susceptible to their marketing ploys, and you may end up spending more money. Get in, get the deals, and then get out.

If you shop during less busy grocery shopping hours, like during the week or at night, your trips will also be faster than battling weekend shopping crowds.

12. Do Stock Up

If you spot an incredible couponing opportunity on nonperishable goods or products you use frequently, it’s generally a smart move to stock up. It ensures you benefit from the deal as much as possible and lets you use more coupons before they expire. It’s an excellent way to set up long-term emergency food and supply storage.

Stacking coupons and store sales lets you score the lowest price possible when stocking up. For example, if Green Giant canned corn is on sale for $0.99 per can and you have several BOGO coupons or manufacturer coupons for $0.50 off per can, you can stock up on as many cans as possible to build your food storage for less than half the regular price.

Some stores limit the number of sale products you can purchase at once. If a store puts a limit on something and you need more of it, visit other store locations to create your stockpile.

Stocking up also lets you be pickier about when you use coupons. For example, if you run out of toilet paper, shop your emergency pantry first. You can replace your emergency supplies when you’re able to stack a sale and a coupon rather than buying full-price TP without a coupon.

That’s especially important for edible pantry goods. Canned and dried foods last a long time, but even they eventually go bad. This method ensures your emergency supplies are always safe to eat. If you have to throw them away, you won’t save any money (and may be in trouble if you need them during a bona fide emergency).

But before you come home with 30 cans of creamed corn, make sure you have a place to store it. You can convert a small area of your home, like a guest room closet or second bathroom linen closet, into your emergency pantry.

13. Do Donate the Excess

When couponing, you sometimes encounter scenarios where you can get so much of a free or cheap product that you can’t even use it all before it expires. It’s still a better deal than purchasing without a coupon, but the thought of letting all that product go bad doesn’t sit well with most people.

Instead of turning down an incredible deal, look into ways to donate excess couponing successes to people in need. Charities like homeless shelters, food banks, and women’s shelters make excellent candidates for donations. You can also reach out to local churches and community outreach programs to see if they need certain supplies.

You may even be able to take a charitable contribution tax deduction.


Couponing Don’ts

If you ever watched shows like TLC’s “Extreme Couponing,” successful couponing looks like hours of dumpster diving for coupon flyers, endless clipping, and (in some cases) being way too frugal.

But couponing doesn’t have to become your full-time job. You don’t need to make things overly complex either. As long as you follow couponing best practices and avoid some common couponing mistakes, your savings can benefit without transforming your living room into a coupon-clipping factory.

1. Don’t Shop Without a Meal Plan

Shopping with a meal plan is an often overlooked couponing tip, but it’s crucial to saving money. If you don’t have a plan to use the products you’re buying each week, you’re more likely to waste food.

Additionally, shopping without a menu makes you more likely to buy convenience food: frozen pizzas, hot dogs, and other fast meals. While these are delicious, they’re not conducive to eating healthy on a budget.

When building your shopping list, plan dishes that line up with products you have coupons for. For example, you find a $1-off coupon for two bags of Sargento cheese, a $0.25 coupon for Classico pasta sauce, and a coupon for $1 off two boxes of Mueller’s pasta. You can plan to make lasagna for dinner one night that week and macaroni and cheese as a side for another meal.

Or perhaps you find a coupon for an ingredient that’s central to many dishes, like chicken or ground beef, that also happens to be on sale. You can plan to make several recipes that use that ingredient, then stack the sale and coupon for even more savings.

If that sounds intimidating, affordable meal-planning services like $5 Meal Plan provide a month’s worth of dinner recipes and various breakfast and lunch ideas for only $5 per month.

2. Don’t Use a Coupon on a Full-Price Product

If you use a $1-off coupon on a full-price two-pack of SlimFast protein drinks for $5.68, you still pay $2.34 per beverage. But if you wait until SlimFast is on sale, you can save even more money. For example, if SlimFast goes on sale for 20% off, you can buy two drinks for $4.54, use your coupon, and pay $3.54, or $1.77 each, saving nearly 40% on your purchase.

That’s why operating with an emergency pantry is such a good idea. If you need to restock on an ingredient or product that day, you have to use coupons even if you miss a sale (or worse, pay full price without a coupon). But if you can afford to wait, you can save money in the long run by shopping during sale periods and with coupons more often.

3. Don’t Buy Something Just Because It’s on Sale

Don’t let sale prices trick you into buying something you don’t typically use just because it looks like a deal. If you use coupons without thinking, you inevitably buy things that are a waste of money or products that expire before you have a chance to use them.

Jumping on every great deal out there significantly lightens your wallet and defeats the whole purpose of couponing. That said, if you find a fantastic deal on something you can donate, there’s nothing wrong with couponing for charity.

4. Don’t Be Brand-Loyal

Prego or Ragu spaghetti sauce? Skippy peanut butter or Jif? Which brand should you buy? The answer: whichever one you can get the cheapest using your coupons.

Many people start couponing because of a major life event, like job loss, pregnancy, or too much debt. Those aren’t the times to be brand-loyal. You need to save money, and you can’t do that if you pass on deals because you prefer specific brands.

And sometimes, the cheapest bet is to go with the store brand, even if it means passing up on a coupon or sale for another brand.

For example, at Walmart, the Great Value line is extensive, covering a range of affordable grocery products and everyday essentials. If your coupons can’t beat Great Value, it’s probably best to save them for another time.

Plus, many retailers give coupons for their own brands through register coupons and coupon mailers, so you can still find ways to save on already affordable store brands.

5. Don’t Use Every Coupon

Some coupons don’t represent real savings. For example, a coupon for $0.50 off two boxes of brand-name cereal doesn’t result in much savings. That’s only $0.25 off each box. Even during a good sale, the coupon may not take the total price down to a better deal than the store brand. Wait for a better coupon and another sale.

Sometimes, you also have good coupons nearing their expiration dates but no sales on the goods you need. Let them expire. You don’t have to use the coupons, especially if you have to buy a brand name at full price to do so.

Couponing is about saving money, not getting good deals on brand-name products.

If you really need something, buy one or two of them now and wait for a sale to buy in bulk.

6. Don’t Waste Time

It’s easy to fall into the couponing trap of spending so much time searching for deals and preparing to shop that you’re turning couponing into a part-time job (there are better side gigs to make extra money).

Start by asking yourself how much time you want to dedicate to couponing. The answer could be 15 minutes on Sunday to look through coupon apps or a couple of hours every week to do more thorough research.

With a time commitment in mind, you should also work efficiently. Some tips to save time when couponing include:

  • Only clipping paper coupons you know you’re going to use
  • Turning clipping into a family activity (don’t forget safety scissors for the younger ones)
  • Linking store loyalty cards with apps like Ibotta to avoid preselecting rebates before shopping

You can also order groceries online and use coupons to save both time and money. Online grocery shopping gives you plenty of time to scout deals and coupons and do the math without feeling pressured. It also saves you from clever marketing tactics that induce impulse buys. They try to do the same things online, but you have more time to talk yourself out of it. And you can typically use the same or similar coupons online you do in stores.

For example, at Kroger, you can load digital coupons onto your Kroger Plus card and have them automatically apply to your online grocery order. And if you pick up the order, you can also use paper coupons (Kroger only accepts their own digital coupons for delivery). Just make sure you hit any free pickup minimums to ensure you’re really saving.

As long as couponing is enjoyable and effective, you’re on the right track. Plus, as you gain experience, you’ll find certain coupon apps or websites work best for your shopping habits and become even more efficient at growing your coupon supply.

7. Don’t Print Coupons You Don’t Use

Online printable coupons from websites like Coupons.com can save money. But you still use computer paper and ink to print the coupons, which costs money and wastes paper.

Many people print every online coupon available and then throw most of them away. Print online coupons as you need them. Save any you’re interested in but don’t need as a PDF or browser bookmark.


Final Word

In many ways, learning to coupon is a series of stages. At first, you use a few tips that are convenient to save, like buying products you have coupons for. As you become more comfortable, you start to mix in tricks like coupon stacking and simply using more coupons per shopping trip. If you start loving the process, you eventually graduate to extreme couponing, where it’s possible to score entire grocery hauls for almost pennies on the dollar if you get it right.

Whatever stage you’re in, the goal of couponing is to save more of your money. How much time you spend on it is up to you.

Source: moneycrashers.com

One-Tap Online Shopping Savings Compared: Capital One Shopping Vs. Honey

There’s no sense in paying full price when shopping online — not when there are two truly legit discount apps that will save you money: Capital One Shopping and Honey.

The question is, which one to go with? Since I do at least 75% of my shopping exclusively online, I decided to run some tests to find out which coupon app was going to come out on top.

If you’re ready to save some serious cash on your next shopping trip, read on.

What’s Ahead:

Capital One Shopping vs. Honey summary

Features Capital One Shopping Honey
Format App
Browser extension
Website
App
Browser extension
Website
Partners Not specified, but most major name brands, plus Amazon 30,000 participating merchants including Amazon and
Watchlist Yes Yes (called Droplist)
Automatic coupon codes Yes Yes
Lowest Amazon price No Yes
Membership required No, except for credits No, except for Gold program
Local offers Yes No

About Capital One Shopping

One-Tap Online Shopping Savings Compared: Capital One Shopping Vs. Honey - Capital One Shopping

One-Tap Online Shopping Savings Compared: Capital One Shopping Vs. Honey - Capital One ShoppingCapital One Shopping is a discount and savings app owned by Capital One. It bills itself as the best option for discounts, loyalty perks, and deals.

To use Capital One Shopping, simply download the app, install the browser extension, or just visit the web site. Using Capital One Shopping gets you better prices on your online shopping, automatic discount codes at checkout, and tracks your must-have items to find the best price.

About Honey

One-tap Savings Compared: Wikibuy Vs. Honey - Honey

One-tap Savings Compared: Wikibuy Vs. Honey - HoneyHoney is an app dedicated to finding you the best deals and promos on all your online shopping. Installing the browser extension or downloading the app gets you great discounts and automatic coupon codes when you’re shopping online.

You don’t even have to lift a finger, Honey will add the best coupon they find right to your cart, or they’ll let you know that you have the best deal. 

Capital One Shopping vs. Honey savings

As major players in the discount code space, it may be tough to tell what sets Capital One Shopping and Honey apart. They’re both extremely effective at finding deals and applying codes. So let’s compare them in terms of savings. 

Capital One Shopping savings

Capital One Shopping helps you save in two main ways. First, it runs a comparison for the item you’re looking at, showing you if there’s a better price somewhere else. So, if you’re browsing Walmart.com for a particular camera, Capital One Shopping checks Amazon, Best Buy, B&H Photo Video, and other stores to see if you’re really getting the best possible deal.

Capital One Shopping shows you who has the lowest price, so that you can make the best choice for your wallet. They even spell out how long to expect for shipping at each alternative store and how much it costs to ship — so you get the true total price.

Then, at checkout, Capital One Shopping will scan all available coupon codes for you — automatically. No more Google searches or saving endless store emails; just have Capital One Shopping work its magic and you get the savings.

A word of warning, though: sometimes the savings you get are just cash back credits, and you can’t cash those out immediately. They may need to be verified and then can be redeemed for gift cards at some of your favorite retailers. 

Honey savings

Honey also automatically scans and applies coupon codes for you when you shop online. You don’t have to waste time with coupons that don’t work, because Honey only applies valid promo codes. 

Honey also saves you money by notifying you when items in your Droplist have changed price. The Droplist is Honey’s version of a watchlist; it’s where you save items you’re interested in. Not only will the Droplist notify you when prices drop, but you can see the price history, too.

Like Capital One Shopping, Honey also offers a cash back program, called Honey Gold, which requires a sign-up. Similar to Capital One Shopping, you have to save up a certain dollar amount (in this case, $10 of “gold”) before you can cash out in the form of a gift card. 

Capital One Shopping vs. Honey savings summary

Both Capital One Shopping and Honey will show you deals and automatically apply promo codes. The real difference comes down to the way you shop. Are you mostly an Amazon shopper? Then Honey is going to help you out. Do you want to take a moment to compare prices across a bunch of different retailers and go with the lowest cost? Then Capital One Shopping is for you. 

Here’s an example: I am in the market for a new pressure cooker. I found one I liked on Amazon. The Honey extension notified me that I found the lowest price of all the sellers on Amazon. I could check out with confidence. But the Capital One Shopping extension showed me that I could actually save $5.99 by taking advantage of a 7% cash back deal at Macy’s. I never would have known about that offer otherwise. 

However, while I may technically be saving $5.99 by purchasing my pressure cooker at that particular department store, I do not actually see those savings immediately; I have to save up the credits and apply them to a gift card, choosing from 32 different stores. Sometimes, you’d just rather have the cash.

Capital One Shopping vs. Honey pros

Capital One Shopping pros:

  • Detailed price history and insights – You’ll get insights into each product you shop for.
  • Compare prices at multiple stores – You can find the best deal at a large number of big-box retailers. 
  • Shipping included in price comparison – Easily see how much you’ll pay for everything, including shipping. 

Honey pros:

  • Finds the lowest offers on Amazon – There are thousands of shops on Amazon, so knowing which has the lowest price can be a huge help.
  • The website is more pleasant and transparent to use – Honey is as simple as downloading a Google Chrome extension.
  • Honey Gold program rewards you with gift cards – After earning a set amount of gold, you can cash out for gift cards. 

Capital One Shopping vs. Honey cons

Capital One Shopping cons:

  • Discounts are sometimes in the form of cash back, not lower prices – Not everyone wants to deal with cash back, some folks would prefer straight cash. 
  • Local deals require linking a credit card – If you want local deals, you’ll need to link your credit card, which could be a problem for those worried about privacy issues. 

Honey cons:

  • “Cash back” is in the form of gift cards at select retailers – Just like Capital One Shopping, cash back comes in the form of gift cards, rather than just cash. 
  • Doesn’t always find a valid code to apply – Honey isn’t perfect, and sometimes they miss coupon codes. 

Why choose Capital One Shopping?

Multiple store comparisons

Since both Capital One Shopping and Honey automatically apply coupon codes, one of the biggest differences might be that Capital One Shopping compares prices across multiple stores. You can also use the Mobile Price Comparison tool if you’re on mobile; text an Amazon link to PRICE1 and Capital One Shopping will text you back if there are lower-priced options available.  

Effective discounts

Capital One Shopping frequently finds a way to save on shopping trips, whether it’s a promo code, cash back offers, or lower shipping. Based on my usage, it seemed to deliver lower prices in some format more often than Honey.

Detailed product pages

The product pages showed a great deal of detail. In addition to the price, you’ll also be able to see a detailed price history, 180-day price insights, price volatility ratio, YouTube reviews, related products, and top alternatives.

Why choose Honey?

Get the lowest Amazon price

Having to sort through all the different prices offered by different Amazon sellers on the same product can be a pain in the neck. Honey does a great job of reducing that workload for you, simply showing the lowest-priced Amazon seller for what you’re looking for. So if you do most of your online shopping with your Amazon Prime subscription, the Honey browser extension will be a big boon.

Or avoid Amazon altogether

If you’re more of a mobile shopper and you tend not to shop on Amazon, the Honey mobile app (as opposed to the desktop browser extension) is a way to find thousands of great deals when you’re on your phone — no Amazon required. In fact, the mobile app doesn’t show Amazon products at all, which could be a good fit for you if you’re not a fan of the behemoth site.

Summary

Overall, choosing either Capital One Shopping or Honey is better than shopping online without them. Each will scour the internet for valid coupon codes, which can save you lots of money. You don’t need a membership with either one unless you want to start earning credits (or “gold”) to be redeemed for cash back. Not to mention, signing up for cash back offers could be worth your while, especially if you don’t mind turning over some of your privacy and letting these extensions track where you shop in exchange for saving a little bit of dough.

However, all that being said, Capital One Shopping does edge out the competition by a nose if you’re looking for the overall lowest price. If you’re primarily interested in coupon codes and Amazon deals, Honey is your better bet.

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Source: moneyunder30.com